annuity - A stream of payments

$1,100 per month for 10 years, if the account earns 2% per year

$1,100 per month for 10 years, if the account earns 2% per year
What the student or parent is asking is: If they deposit $1,100 per month in a savings/investment account every month for 10 years, and they earn 2% per year, how much will the account be worth after 10 years?
Deposits are monthly. But interest crediting is annual. What we want is to match the two based on interest crediting time, which is annual or yearly.
1100 per month. * 12 months in a year = 13,200 per year in deposit
Since we matched interest crediting period with deposits, we now want to know:
If they deposit $13,200 per year in a savings/investment account every year for 10 years, and they earn 2% per year, how much will the account be worth after 10 years?
This is an annuity, which is a constant stream of payments with interest crediting at a certain period.
[SIZE=5][B]Calculate AV given i = 0.02, n = 10[/B]
[B]AV = Payment * ((1 + i)^n - 1)/i[/B][/SIZE]
[B]AV =[/B]13200 * ((1 + 0.02)^10 - 1)/0.02
[B]AV =[/B]13200 * (1.02^10 - 1)/0.02
[B]AV =[/B]13200 * (1.2189944199948 - 1)/0.02
[B]AV =[/B]13200 * 0.21899441999476/0.02
[B]AV = [/B]2890.7263439308/0.02
[B]AV = 144,536.32[/B]

$150,000; 7%; 25 yr ordinary annuity formula

$150,000; 7%; 25 yr ordinary annuity formula
[URL='http://www.mathcelebrity.com/annimmpv.php?pv=&av=&pmt=150000&n=25&i=7&check1=1&pl=Calculate']Answer for PV and AV[/URL]

Annuities

Solves for Present Value, Accumulated Value (Future Value or Savings), Payment, or N of an Annuity Immediate or Annuity Due.

Annuity that pays 6.6% compounded monthly. If $950 is deposited into this annuity every month, how m

Annuity that pays 6.6% compounded monthly. If $950 is deposited into this annuity every month, how much is in the account after 7 years? How much of this is interest?
Let's assume payments are made at the end of each month, since the problem does not state it. We have an annuity immediate formula. Interest rate per month is 6.6%/12 = .55%, or 0.0055. 7 years * 12 months per year gives us 84 deposits.
Using our [URL='http://www.mathcelebrity.com/annimmpv.php?pv=&av=&pmt=950&n=84&i=0.55&check1=1&pl=Calculate']present value of an annuity immediate calculator[/URL], we get the following:
[LIST=1]
[*]Accumulated Value After 7 years = [B]$101,086.45[/B]
[*]Principal = 79,800
[*]Interest Paid = (1) - (2) = 101,086.45 - 79,800 = [B]$21,286.45[/B]
[/LIST]

Arithmetic Annuity

Calculates the Present Value, Accumulated Value (Future Value), First Payment, or Arithmetic Progression of an Increasing or Decreasing Arithmetic Annuity Immediate.

Compound Interest and Annuity Table

Given an interest rate (i), number of periods to display (n), and number of digits to round (r), this calculator produces a compound interest table. It shows the values for the following 4 compound interest annuity functions from time 1 to (n) rounded to (r) digits:

v^{n}

d

(1 + i)^{n}

a_{n|}

s_{n|}

ä_{n|i}

s_{n|i}

Force of Interest δ^{n}

v

d

(1 + i)

a

s

ä

s

Force of Interest δ

Continuous Annuity

Determines the Present Value and Accumulated Value of a Continuous Annuity

Geometric Annuity Immediate

Given an immediate annuity with a geometric progression, this solves for the following items

1) Present Value

2) Accumulated Value (Future Value)

3) Payment

1) Present Value

2) Accumulated Value (Future Value)

3) Payment

If 5000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the

If 5000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in the bank after 9 years if interest is compounded annually.
We assume the interest is compounded at the end of the year. Use the [URL='http://www.mathcelebrity.com/annimmpv.php?pv=&av=&pmt=5000&n=9&i=10&check1=1&pl=Calculate']annuity immediate formula[/URL]:
[B]67,897.39[/B]

If you buy a computer directly from the manufacturer for $3,509 and agree to repay it in 36 equal in

If you buy a computer directly from the manufacturer for $3,509 and agree to repay it in 36 equal installments at 1.73% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid?
[U]Determine the monthly payment[/U]
The monthly payment is [B]$114.87[/B] using our [URL='http://www.mathcelebrity.com/annimmpv.php?pv=3059&av=&pmt=&n=36&i=1.73&check1=1&pl=Calculate']annuity calculator[/URL]
[U]Determine the total payments made[/U]
Total payment is 36 times $114.87 = $4,135.37
[U]Now determine the total interest paid[/U]
Take the total payments of $4,135.37 and subtract the original loan of $3,059 to get interest paid of [B]$1,076.37[/B]

Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity pay

Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent?
This is an annuity due, since the first payment is made on the date of purchase.
Using our [URL='http://www.mathcelebrity.com/annimmpv.php?pv=&av=&pmt=5000&n=20&i=7&check1=2&pl=Calculate']present value of an annuity due calculator[/URL], we get [B]56,677.98[/B].